When the U.S. stock market collapsed in the spring of 2009, REITs where hit very hard as real estate prices and occupancy rates suffered. Most REITs have recovered a good portion of their losses and the REIT indexes have performed well since those dark days. However, there are some REITs that have struggled to get back on their feet. In most cases, there is a very good reason for a stock to trade at the low end of its range so a detailed analysis would be necessary before any commitment of capital. However, occasionally these stocks can be a good hunting ground for value or a place to find a stock that is in transition and poised for a turnaround. Below are ten REITs that are trading near their 52-week lows.
Winthrop Realty Trust (FUR) operates as a real estate investment trust through the ownership of real property, loans secured by real property, the debt and equity of other real estate related companies and joint venture investments. Due to the nature of the their business, the company's holdings are very diverse and do not represent a specific real estate sector or geographic location. The company recently reported that earnings for 2010 were $16.2 million versus a net loss of $84.5 million in 2009. Funds from operations for 2010 were $32.4 million versus a negative $70.4 million in 2009. The trust also declared a quarterly dividend of $0.1625 per share payable April 15, 2011.
The 52-week range is $10.10 - $14.59 and the stock is currently trading at $11.48.
American Assets Trust, Inc. (AAT) primarily owns, operates and develops retail and office properties in California and Hawaii. The trust also has interest in apartments and one 369-room hotel. The trust just went public earlier this year at $20.50 per share and declared its initial dividend on March 4 of $0.17 per share. The company has not reported operating results since becoming a publicly traded trust, but the Form S-11showed the trust returned to profitability in 2009 after losses in 2008 and 2007.
The 52-week range is $20.45 - $22.00 and the stock is currently trading at $20.95.
Terreno Realty Corporation (TRNO) is focused on acquiring, owning and operating industrial real estate in the U.S. coastal markets of Los Angeles, Northern New Jersey/New York, San Francisco, Seattle, Miami and Washington D.C./Baltimore. Terreno went public as a blind-pool and has been acquiring properties since its offering in early 2010. Since the trust started as a blind-pool just a year ago, it was difficult to measure financial performance for 2010. Numbers reported over the next couple of quarters should prove to be more relevant. The trust did initiate its quarterly dividend at $0.10 per share and it will be payable April 19, 2011 to stockholders of record on April 5.
The 52-week range is $16.56 - $20.56 and the stock is currently trading at $16.90.
Sabra Healthcare REIT, Inc. (SBRA) owns and invests in real estate serving the healthcare industry. Most of the trust's current portfolio is skilled nursing facilities and assisted living facilities. The trust was the result of a spin-off from Sun Healthcare Group, Inc. (SUNH) in late 2010. The trust did announce that funds from operations from November 15 - December 31, 2010 were $0.12 per diluted share and earnings broke even for the period. The trust anticipates paying its initial dividend in 2011.
The 52-week range is $16.18 - $31.02 and the stock is currently trading at $17.58.
Hudson Pacific Properties, Inc. (HPP) acquires, owns and operates primarily high-end office properties in Northern and Southern California. The trust also owns two entertainment studios in Hollywood, California. The company just reported that funds from operations increased to $5.1 million in the fourth quarter of 2010 compared to $4.4 million in 2009. The company also increased its 2011 guidance for funds from operations from $0.82 - $0.86 to $1.01 - $1.06. In addition the company increased its dividend 31.6% in the first quarter of 2011 to $0.125 per share.
The 52-week range is $14.06 - $17.85 and the stock is currently trading at $14.13.
Cedar Shopping Centers, Inc (CDR) owns, develops, acquires and manages supermarket-anchored shopping centers and drug store-anchored convenience centers in the states of Connecticut, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Virginia. The trust announced funds from operations was $38.6 million for 2010 which was $16.3 million lower than 2009. The trust paid a dividend of $0.09 per share on February 22, 2011.
The 52-week range is $4.91 - $8.39 and the stock is currently trading at $5.38.
Cogdell Spencer, Inc. (CSA) owns, develops and manages medical office facilities in twelve states throughout the United States. The trust reported earlier this month that 2010 funds from operations excluding non-recurring events and impairment charges was essentially flat year over year at $28.5 million. The trust recently declared a quarterly dividend of $0.10 per share.
The 52-week range is $5.67 - $8.52 and the stock is currently trading at $5.73.
Transcontinental Realty Investors, Inc. (TCI) acquires, finances and operates real estate properties across the United States with a focus on acquiring undervalued properties. The company owns primarily apartment communities, office building and various other commercial properties. Most of these properties are currently located in Texas with a concentration in the Dallas-Fort Worth and Houston areas. The day-to-day management of the trust has been assigned to Prime Income Asset Management, LLC. The trust has not reported full year results for 2010, but third quarter results showed a net loss from continuing operations of $11 million compared to a loss of $13 million for the same period in 2009. The trust currently does not pay a dividend.
The 52-week range is $3.26 - $13.13 and the stock is currently trading at $3.85.
NTS Realty Holdings Limited (NLP) owns and operates apartment communities, residential communities and commercial properties. The trust's residential properties are primarily located in Indiana, Kentucky, Tennessee, Florida and Virginia. The commercial properties primarily consist of office buildings and are primarily located in the Louisville, Kentucky area. The company has yet to report earnings all of 2010, but did show a net loss of nearly $3 million for the third quarter which was essentially flat compared to the same period in 2009. The company recently declared a quarterly distribution of $0.05 per unit.
The 52-week range is $3.20 - $5.52 and the stock is currently trading at $3.40.
Mission West Properties, Inc. (MSW) is engaged in the acquisition, development and management of primarily research and development related properties in the Silicon Valley of California. The trust recently announced that funds from operations for the full year of 2010 decreased to $56 million from $60.5 million in 2009. The company paid a quarterly dividend of $0.15 per share to stockholders on January 6, 2011. This equates to a yield of over 9.2%.
The 52-week range is $6.45 - $7.74 and the stock is currently trading at $6.49.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.